Service tax is a tax levied by Central Government of India on services
provided or to be provided excluding services covered under negative list and
considering the Place of Provision of Services Rules, 2012 and collected as per
Point of Taxation Rules, 2011 from the person liable to pay service tax.
Person liable to pay service tax is governed by Service Tax Rules, 1994
he may be service provider or service receiver or any other person made so
liable. It is an indirect tax wherein the service provider collects the tax on
services from service receiver and pays the same to government of India.
Few services are presently exempt in public interest via Mega Exemption
Notification 25/2012-ST as amended up to date & few services 0are charged
service tax at abated rate as per Notification No. 26/2012-ST as amended up to
date. Presently from 1 June 2015, service tax rate has been increased to
consolidated rate @ 14% of value of services provided or to be provided.
The service tax rate now is consolidated rate as education cess &
secondary higher education cess are subsumed with 2% of "Swachh Bharat
Cess(0.50%)" has been notified by the Government.
From 15 November 2015, the effective rate of service tax plus Swachh
Bharat Cess, post introduction of Swachh Bharat Cess, will be 14.5%.